Birla cement!

1. BIRLA CEMENT

2. FLOW OF CONTENT Introduction Company Overview Manufacturing Process Finance Marketing HR Recession Company’s Current Status Future of the Company Conclusion

3. INTRODUCTION By Saurav and Amneet

4. History of Cement Used in ancient world by : Egyptians as calcined gypsum. Romans used crushed volcanic ash. Britain manipulated its properties for specific application and situation. The indigenous Indian cement industry traces its history back in 1914. Indian cement manufacture’s association was set up in 1925. Before partition India had 24 cement factories out of which it retained only 19th.

5. Cement Industry Decontrol- March 1989. Oligopolistic nature of cement industry. Main beneficiary of infrastructure boom. Indian cement is 2nd largest after china. Net profit growth rate - 85% Contribution to India’s economic development - 8% Presence of few foreign companies.

6. Major Players ACC Limited Gujarat Ambuja UltraTech JK Group India Cements Birla Cement

7. Prospects of Cement Industry Import from Pakistan affecting Indian market. Excess over capacity can hurt margins as well as price. Cement production is cutting down because of negative pressure on prices. Cheap labour and government subsidy proves as a leverage for Indian Cement industry.

8. Current Statistics According to sales of may 2013 shows 14% growth over 2012. India’s per capita consumption is 170kg. Indian to match its demand have to add another 150 million tones of capacity. Provide 6% of employment to unskilled labour in southern region. Various subsidy is provided by government for its growth. In 2013 it has attracted FDI of US$ 2000 million.

9. Sectoral Consumption

10. COMPANY OVERVIEW By Preety Jha

11. About Us A metals powerhouse, among the world's most cost-efficient aluminium and copper producers. No.1 in viscose staple fibre No.1 in carbon black The fourth-largest producer of insulators The fourth-largest producer of acrylic fibre Among the top 10 cement producers Among the best energy-efficient fertilizer plants The largest Indian MNC with manufacturing operations in the USA

12. The Indian Scenario The largest fashion (premium branded apparel) and lifestyle player The second-largest manufacturer and largest exporter of viscose filament yarn The largest producer in the chlor -alkali sector Among the top three mobile telephony companies A leading player in life insurance and asset management Among the top two supermarket chains in the retail business Among the top 6 BPO companies The largest manufacturer of linen fabric.

13. Vision And Values To be a premium global conglomerate, with a clear focus on each of the businesses . OUR MISSION To deliver superior value to customers, shareholders, employees and society at large . OUR VALUES Integrity : Acting and taking decisions in a manner that is fair and honest . Commitment : On the foundation of Integrity, doing all that is needed to deliver value to all stakeholders .

14. Continued… Passion :  An energetic, intuitive zeal that arises from emotional engagement with the organization. Seamlessness : Thinking and working together across functional groups, hierarchies, businesses and geographies. Speed : Responding to internal and external customers with a sense of urgency.

15. MANUFACTURING By Gaurav Vyas

16. Portland Cement By definition — A hydraulic cement produced by pulverizing clinker consisting essentially of hydraulic calcium silicates, usually containing one or more of the forms of calcium sulfate as an interground addition

17. Source: PCA, 2003

18. Raw Materials Necessary for Portland Cement Manufacture Must Provide the Following Calcium Silica Alumina Iron

19. Calcium Iron Silica Alumina Sulfate Alkali waste Aragonite Calcite Cement-kiln dust Cement rock Chalk Clay Fuller ’ s earth Limestone Marble Marl Seashells Shale Slag Blast-furnace flue dust Clay Iron ore Mill scale Ore washings Pyrite cinders Shale Calcium silicate Cement rock Clay Fly ash Fuller ’ s earth Limestone Loess Marl Ore washings Quartzite Rice-hull ash Sand Sandstone Shale Slag Traprock Aluminum-ore refuse Bauxite Cement rock Clay Copper slag Fly ash Fuller ’ s earth Granodiorite Limestone Loess Ore washings Shale Slag Staurolite Anhydrite Calcium sulfate Gypsum Source: PCA, 2003

20. Traditional Manufacture of Portland Cement 1. Stone is first reduced to 125 mm (5 in.) size, then to 20 mm (3/4 in.), and stored.

21. Raw materials are ground to powder and blended. or 2. Raw materials are ground, mixed with water to form slurry, and blended.

22. 3. Burning changes raw mix chemically into cement clinker. Source: PCA, 2003

23. 3. Burning changes raw mix chemically into clinker. Note four stage preheater, flash furnaces, and shorter kiln.

24. Pyro- Processing

25. 4. Clinker is ground with gypsum into portland cement and shipped. Clinker Gypsum

26. Types of Portland Cement Normal Moderate sulfate resistance High early strength Low heat of hydration High sulfate resistance

27. FINANCE FINANCE By Nirvick

28. Is Cement Industry a Cyclical stock or a Defensive Stock?

29. Merger ‘n’ Acquisition  Grasim Industries and  UltraTech Cement- merging. UltraTech Cement was acquired from  L&T. In 2013, Aditya Birla Group acquired Jaypee’s Gujarat cement unit for an enterprise value of Rs 3,800 crore . Birla said the acquisition will be funded through equity of Rs 150 crore , debt worth Rs 2,000 crore and the remainder of Rs 1,650 crore through internal accruals.

30. Current Financial Status UltraTech Cement Q3 net profit dips 38 pct to Rs 370 cr. Profit dip due to subdued selling price of building materials amidst poor demands .   It had clocked Rs 601 crore net profit in the corresponding quarter of last fiscal. Ultratech Cement's net sales also marginally declined to Rs 4,786 crore during the quarter from Rs 4,857 crore a year earlier . Total expenses increased to Rs 4,267 crore from Rs 4,072 crore a year ago . Freight costs rose to Rs 1,119 crore against Rs 1,059 crore .

31. In the next 10 years, India will become the main exporter of clinker and gray cement to the Middle East, Africa and other developing nations Many foreign players are also expected to enter the cement sector in the next years.

32. Profit and Loss Report

33. Financial Ratios   Mar '13 Mar '12 Mar '11 Mar '10 Mar '09 Current Ratio 0.96 0.87 1 0.97 0.71 Quick Ratio 1.23 1.35 1.1 1.11 1.54 Debt Equity Ratio 0.53 0.72 0.61 0.8 1.2 Inventory Turnover Ratio 7.37 7.31 6.07 6.41 7.51 Debtors Turnover Ratio 4.34 5.92 6.96 6.1 5.81 Asset Turnover Ratio 0.97 0.91 0.76 0.57 0.62

34. Stock Market

35. MARKETING By Yukti Taneja

36. SOURCES OF COMPETITIVE ADVANTAGE ABG acquired L&T cement in 2003 and named it as UltraTech Cement. Also possessed Grasim Cement which was later merged into UltraTech Cement industry. Sourcing of raw materials

37. STP s Segmentation: Geographical segmentation. Targeting: Differentiated target marketing. Positioning: Product differentiation. Image differentiation.

38. BRANDING Represents expertise, strength and modernity. In-film branding with “ Chak de India”. IPL connect with Rajasthan Royals and Deccan Chargers. Also associated with Business India exhibition- “A celebration of Architecture”. Has also been honoured with the title, “ SUPERBRAND ” by Superbrands Council for years 2011 and 2012.

39. MARKET LEADERSHIP Largest domestic M&A deal of Rs . 3800 cr. w hich will increase the capacity of UltraTech cement to 59 mtpa . Installed capacity is projected to go up to 70 mt by 2015.

40. HR Policy By Priyanka Chandgothia

41. Human Resource Management Recruitment STRATOS (On Campus) Flagship competition for management students.  Open only for reputed colleges. Training / Leadership Program The program is currently offered at the following levels: GIP :  Group Internship Program  LEAD : Leadership Program for the Experienced LEAP :   Leadership Associate Program HRLP :  Human Resources Leadership Program FLP :  Finance Leadership Program

42. Human Resources Leadership Program Post-training period: Career path that an HRLP participant is expected to take: The first role - HR/IR in a manufacturing location. The second role - HR generalist in a manufacturing or service business. The third role - HR specialist in Group HR or corporate HR of a business.

43. Human Resource Management Learning and Development Gyanodaya Continuous Education E-learning Leadership programs Performance Management Meritocracy 360 Degree Appraisal

44. Human Resource Management Benefits Talent Management– Employee as well as Family Happiness At Work Recognition: ABG awards Individual awards Team awards Pride awards

45. IS CEMENT INDUSTRY RECESSION FREE? By Pallavi

46. Effect of global recession on real estate and infrastructure. Demand and supply gap, overcapacity. Increasing cost of production. High interest rates. Recession In Cement Industry

47. Cement : Demand and Growth

48. COMPANY’S CURRENT STATUS By Shreysee

49. Current Status Of Birla Cement Ultratech Cement is India’s largest white cement producer. Among the top 10 producer of Grey Cement in the world. Present in 5 Countries- India, UAE, Srilanka , Bangladesh and Bahrain.

50. 1 white Cement plant and 1 Clinkerisation in UAE. 15 Grinding Units- 11 in India, 2 in Bahrain and 2 Bangladesh 2 Rail Bulk Terminals in India. 4Coastal Terminals- 3 in India and 1 in Srilanka 101 Concrete Plants around the world. Market Cap over 500 billion and Annual Capacity of 53.9 million tonnes . I ndia’s largest Cement Clinker Exporter. G iven the title of “ Superbrand ” by the Super brands Council and Consumer Selected “ Powerbrand ” by Powerbrands India.

51. Given the title of “ Superbrand ” by the Super brands Council and Consumer Selected “ Powerbrand ” by Powerbrands India . More than 200 sales office across the country. It provide a range of products: UltraTech Cement engineer choice UltraTech Concrete (RMC) UltraTech Building Products UltraTech Building Solution Birla White Star Cement

52. News Ultratech acquire Jaypee's cement unit in Gujarat in nearly 3,800 crores . Ultratech Cement reported a 38.43% dip in net profit for the October-December quarter at Rs . 370 crore . Net sales declined 1.5% to Rs 4,786 crore in the quarter ended December 2013 from Rs 4,857.4 crore in a year ago period.

53. EBIDT dropped 25.4% to Rs 764 crore . Finance cost of the company jumped 73.6% on yearly basis to Rs 90.45 crore while tax expenses dropped 45 percent to Rs 139 crore compared to a year ago period.

54. Future of the company By Atrayee

55. Future Aspect Of Cement Industry Production of cement is expected to cross 400 million tonnes in the next few years Demand for cement is increasing at 8-10 per cent Players can increase their capacities from 210 million tonnes to 500-600 million tonnes every year Greater thrust on agriculture and suggested “second green revolution” will increase the use of cement in this industry.

56. In the next 10 years, India will become the main exporter of clinker and gray cement to the Middle East, Africa and other developing nations Many foreign players are also expected to enter the cement sector in the next years.

57. Future Aspect Of Ultra-tech Cement Amidst near-term weakness, the UTCEM management is optimistic on the long term growth prospects of the Indian Cement industry. Focus on market share and leadership. Aggressive capex to expand and improve efficiencies. Ongoing expansion would increase capacity by 20% over FY14-16 to 64.45MT. Adopted multiple operating efficiency enhancement measures to combat cost pressure.

58. conclusion By Aditya

59. SWOT ANALYSIS STRENGTH OPPORTUNITY Technological excellence 1. Increasing urbanization Growing international presence 2. Industrial growth Product innovation 3. Emerging e commerce Strong brand recognition business WEAKNESS THREAT Long process chain 1. Loss of sale to substitute Complexity of operation 2. Fluctuation in foreign market

60. Aditya B irla ultra tech cement (UNIT OF RAJSHREE CEMENT) incepted in 1983 since then Birla cement has been doing business very well . Birla cement has tolerated many market thrust but still the company is standing with its glory and a huge goodwill . INDIA has 4th largest economy in the world in that Birla plays an important role to building the India Conclusion

61. BIRLA always enjoy the loyalty of their customer this would be possible only B irla maintain their future scope INTEGRITY Honesty in every stage COMMITMENT Deliver on the promise PASSION Energized action EMPATHY Creating social belongingness Basically company providing a strong base structure to the country and their people creating the hope which everyone wants